Drugfree Workplace Program Could Warrant WC Discount

There is a 5 percent (5%) workers' compensation insurance premium
discount for those employers who establish a drug-free workplace on the
job.

The bill applies to all workers' compensation policies issued and renewed
in Alabama on or after July 1, 1996.

To qualify for the discount, an employer's drug-free program must be
certified by the Workers' Compensation Division of the Alabama Department
of Labor as being in full compliance with the provisions
of Code of Alabama, 1975, Sections 25-5-330 through 25-5-340.
The Law requires that a program must contain all of the following elements:

A written drug-free workplace policy statement.

A substance abuse testing program.

Provisions for an Employee Assistance Program.

Employee education.

Supervisor training.

This premium discount will be applied to the insured's policy pro rata
as of the date the employer receives certification and will continue
for a period not to exceed four years. Certification is required for
each of the four years. Thereafter, any premium discount is determined
from the experience rating plan of the employer, or by the State Insurance
Secretary if the employer is not experience rated.

The Alabama Department of Labor Workers' Compensation Division has adopted
administrative rules which address the elements of the drug-free workplace
program and the certification process. For basic information on establishing
such a program, the Workers' Compensation Division has provided the following
guides and publications. Click on any of the links below to download
the corresponding guide or publication.